Who needs to complete Form S for the self-employed?

A self-employed activity is typically carried out by freelancers. A freelancer is someone who works independently and is responsible for their own work, engaging in a specific professional activity or occupation listed in § 18 para. 1 of the Income Tax Act. Freelance professions require an activity that does not necessarily need to be preceded by a university degree. It only needs to be a form of scientific training. This includes self-study or knowledge acquired through professional experience. The knowledge must be equivalent to a university degree.

(1) Freelancers are, on the one hand, individuals who perform a specific activity (§ 18 para. 1 no. 1 of the Income Tax Act), namely a

• scientific, artistic, literary, teaching or educational activity.

(2) Freelancers are also individuals who practise a specific professional occupation explicitly mentioned in the Income Tax Act (§ 18 para. 1 no. 1 of the Income Tax Act):

• Medical professions: doctors, dentists, alternative practitioners, dental practitioners, physiotherapists.
• Legal and business consulting professions: lawyers, notaries, patent attorneys, auditors, tax consultants, business economists, certified accountants, tax agents.
• Technical and scientific professions: surveyors, engineers, architects, commercial chemists, pilots.
• Media professions: journalists, photojournalists, interpreters, translators.

(3) Freelancers can also be individuals who practise a similar profession comparable to the listed professional occupations in terms of activity and training. The list of freelance professions in § 18 para. 1 no. 1 of the Income Tax Act is not exhaustive. It is important that the activity is carried out in a leading and independent manner based on personal expertise. This applies, for example, to the following professions:

• Geriatric nurses, dieticians, occupational therapists, podiatrists, speech therapists, orthoptists, medical pedicurists, state-certified masseurs and therapeutic masseurs, medical bath attendants, paramedics, dental practitioners, midwives, psychological psychotherapists, child and adolescent psychotherapists, IT consultants, business consultants.
• Software engineering, work as a network or software administrator and supervisor (Federal Fiscal Court rulings of 22.9.2009, VIII R 31/07, VIII R 63/06, VIII R 79/06).

(4) Activities that cannot be classified as freelance work and do not constitute a business operation fall under other self-employed activities. A characteristic here is also personal work performance. However, other self-employed activities are usually carried out occasionally and only exceptionally on a sustainable basis (§ 18 para. 1 no. 3 of the Income Tax Act):

• Executors, asset managers, supervisory boards, property managers, insolvency administrators, trustees, carers, estate administrators, arbitrators, interviewers for state statistical offices, childminders, legal guardians, etc.

The distinction between business operations and self-employed activity is often difficult, as freelance work usually also involves the intention to earn income. Many activities therefore fall under both the characteristics of freelance work and those of a business. In these cases, the decisive criterion is the intellectual, creative work that is the focus of freelance work.